ABA Statement on Release of House Tax Reform Bill

By Rob Nichols, ABA president and CEO

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​“We welcome today’s release of the House Ways & Means Committee’s tax reform proposal, and believe it’s an important and positive step toward finally reforming our nation’s tax code. We appreciate that Chairman Brady and the committee recognize that a lower tax rate is necessary for all U.S. businesses, including America’s banks, to be more competitive in the global market. ABA remains committed to comprehensive tax reform that grows the economy, creates jobs and adheres to our core principles.

“We are in the process of evaluating the proposal against those principles, and we are encouraged by our initial analysis. The 20-percent rate for corporations in particular promises to generate economic activity and jobs that will benefit the country and our customers. We are looking closely at specific provisions including the limits on net interest deductibility, the treatment of pass-throughs and changes to homeownership incentives to assess their impact on our members, their customers and the economy. In addition, we are concerned that the House bill proposes to change the rules for deducting the cost of FDIC premiums for some banks.

“We are disappointed the House has not taken this critical opportunity to address the tens of billions of dollars in outdated, unfair and unreasonable tax advantages enjoyed by credit unions and the Farm Credit System. We will continue to make the case that businesses offering similar services should be treated equally under the tax code.

“As this bill progresses, we look forward to doing our part to support pro-growth tax reform, while working with lawmakers in both the House and Senate as they make improvements that could further invigorate the U.S. economy and create new opportunities for all Americans.”

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The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, midsize, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.